Financial Incentives and Job‐search Training: Methods to Increase Labour Market Integration in Contemporary Welfare States?

In their efforts to increase labour market integration, contemporary welfare states emphasize the importance of financial incentives, active job‐searching and participation in labour market programmes. However, the effects of these policies have been minor and in some cases even inconsistent. The aim of this study was to examine whether and how financial incentives and job‐search training programmes increase re‐employment and the quality of re‐employment. A total of 1,015 unemployed persons participated in a Finnish follow‐up study with a randomized experimental design. Although no overall impact of job‐search training on re‐employment emerged, a positive effect was found for those groups of the unemployed who had a financial incentive to participate in the programme. Nevertheless, among unemployed workers with benefits at a minimum level there were no positive effects on the quality of re‐employment, and the impact decreased when unemployment was prolonged. Financial incentives and job‐search training appear to increase re‐employment among those of the unemployed who generally have better chances on the labour market, whereas these measures are not sufficient for the more disadvantaged groups of the unemployed.     

Labour Markets,Care Regimes and Foreign Care Worker Policies in East Asia

This article analyzes the politics of foreign care worker policies in Japan, Korea and Taiwan. In the face of socio‐demographic challenges, these countries have responded differently to the increasing demand for hiring foreign care workers, creating distinct policies with respect to the origins of the foreign care workforce, the size of the foreign care workforce in the labour market, and job specifications. In this article, I argue that the interaction of female employment patterns, the public provision (or lack) of social care, and labour market policies in the care service sector determines the diverging political pathways of foreign care worker policies in these three countries over the past two decades.     

Restructuring of Full‐time Workers: A Case of Transitional Dislocation or Social Exclusion in Canada? Lessons from the 1990s

The decade of the 1990s witnessed an unprecedented erosion of the postwar welfare state, with massive restructuring of the labour market away from full‐time, sustaining employment. This article examines the experiences of restructured Canadian full‐time workers who lost a job because of a company shutdown, relocation, or non‐seasonal business slowdown. Using data from Statistics Canada's Survey of Labour and Income Dynamics for the period 1993–2001, we present longitudinal data examining labour market outcomes at 6, 12, 18 and 24 months following the initial job loss. Outcome data allow us to examine the extent to which job displacement in the 1990s resulted in transitional dislocation followed by stable full‐time employment, or whether new pathways to social exclusion and marginalization were created. Given that only half of workers who lost their full‐time jobs during this period were in stable and full‐time employment two years later, we find support for the latter. The article further identifies policy alternatives that could lessen the social costs of neo‐liberal labour market restructuring in Canada and beyond.     

Lone-parent Families in Europe: A Variety of Economic and Social Circumstances

The third wave of the European Community Household Panel Survey (ECHP) shows that 12 per cent of European families were lone-parent families in 1996. Nine single parents out of ten are women, usually divorced or separated. The proportion of lone parents under 30 varies from 3 per cent in Italy to 20 per cent in the United Kingdom. Most lone parents are in work, and very often occupy a full-time job, but the employment rate ranges from only 40 per cent in Ireland and the United Kingdom to 75 per cent in France and Denmark. Lone-parent families benefit from social transfers more often than other families, and for higher amounts, but poverty is more common than in other households, except in Denmark, Greece and Portugal. The housing circumstances of lone-parent families vary widely from country to country. In the south of Europe, 25 to 40 per cent are lodging in a larger household, suggesting solidarity within the extended families. This paper classifies the nations of Europe into five groups in terms of the overall circumstances of lone-parent families. Anglo-Saxon countries have the highest proportion of lone parents, with the least labour market participation and lower incomes. In contrast, lone parents in Scandinavian countries are more often at work and no more affected by poverty than other types of households.     

Tipping points: what participants found valuable in labour market training programmes for vulnerable groups

Graham JR, Jones ME, Shier M. Tipping points: what participants found valuable in labour market training programmes for vulnerable groups
Int J Soc Welfare 2010: 19: 63–72 © 2009 The Author(s), Journal compilation © 2009 Blackwell Publishing Ltd and the International Journal of Social Welfare. This article is based on face‐to‐face and focus group interviews with 72 people who have experienced ongoing difficulties integrating into Canadian labour markets, and who had completed a labour market training programme. Participants were representative of at least one (and often several) categories that inhibited labour market integration: low socio‐economic status, Aboriginal status, single parenthood, criminal justice history and being disabled. The major finding: respondents associated life skills rather than labour‐market skills with success in overcoming personal barriers to securing and maintaining employment. Life skills involved developing life meaning and interpersonal skills related to personal cognition and behaviours. Valued cognitions identified by participants were gaining a new perspective on life and realising that the past impacts the present. Valued behaviours identified by participants included actions associated with understanding personal characteristics and motivations, and building positive social support and social capital. These insights provide theoretically rich considerations for labour market training programmes and could considerably influence labour market policies and practices, particularly since most training programmes and policies are geared toward human capital (i.e. labour‐market skills) accumulation.     

What works best when? The role of active labour market policy programmes in different business cycles

Nordlund M. What works best when? The role of active labour market policy programmes in different business cycles Int J Soc Welfare 2011: 20: 43–54 © 2009 The Author, Journal compilation © 2009 Blackwell Publishing Ltd and the International Journal of Social Welfare. At what point in a business cycle do long‐term unemployed persons gain most from participation in active labour market policy programmes (ALMP) as compared with openly unemployed persons? This article studies this question from the perspective of individual human capital with the hazard of labour market exit and chances of future labour market stability and equal post‐unemployment income as output variables. All the long‐term unemployed in Sweden were followed on a four‐year basis, with 1993 (recession) and 1999 (boom) as starting years. The study shows mainly positive effects among participants regardless of the state of the market. However, ALMP training has a ‘bridging’ effect over different labour market conditions, and a quick return to the regular labour market is, therefore, not as important for the success of participation as it is among ALMP employment participants.     

Public Sector & Private Sector Employment Programs as Competing Solutions to Unemployment

The object of this paper is to examine private sector wage subsidies and public sector job creation as competing solutions to unemployment. This has been undertaken firstly, by critically evaluating the general arguments adduced for the respective programs. Secondly, consideration is given to the outcomes from examples of such programs. In this case the Special Youth Employment Training Program (SYETP) and the Regional Employment Development Scheme (REDS) were selected as relevant examples of private and public sector employment programs conducted in Australia. It was found that SYETP had difficulty fulfilling its twin objectives of providing training for those disadvantaged in the labour market and fulfilling their transition to unsubsidised employment. Wage subsidies have a major administrative flaw in that it is extremely difficult to determine whether a subsidy results in either net job creation, i.e., creating a position which would not exist in absence of the subsidy, or the substitution of subsidised for non-subsidised labour. The operation of wage subsidies results in a degradation of the labour market, or substitution of permanent for casual, high turn-over positions. Public sector job creation is subject to certain benefits that do not accrue to private sector schemes. It is argued that RED type schemes have a greater capacity to incorporate more intensive formal skills training, and can more readily manipulate tax and employment multipliers. An attempt has been made to compare the cost efficiency of SYETP and REDS in creating employment. One important, though tentative result of this exercise is that the effectiveness of wage subsidies as a job creation mechanism is dependent upon economic growth. Consequently there is a paradox in the use of wage subsidies whereby they are most effective when they are least needed and most needed when they are least effective.     

Free,free, set them free? Are programmes effective that allow job centres considerable freedom to choose the exact design?

Active labour market programmes are expected to be quite effective if job centres have a substantial degree of freedom to deliver tailor‐made individual services. For Germany, we studied the effectiveness of Schemes for Activation and Integration (SAI), which were introduced in 2009 to grant such freedoms to implement short training and private placement services. We estimated SAI participation effects on welfare recipients’ earnings and employment rate using propensity score matching and rich administrative data. We distinguished between participation in in‐firm training or training in other settings, and considered effect heterogeneity by gender, region and non‐employment duration. Participation substantially improved the participants’ earnings and employment rate, in‐firm training more so than training in other settings. Our employment effect estimates were not considerably larger than those previously found for comparable pre‐reform programmes. A lack of experience with SAI and a still inadequate client focus in the period studied might explain this.     

Facilitating the professional transition of migrants in Australia: does gender matter?

This article explores the provision and effects of a program devised to facilitate the professional transition of skilled migrants from non‐English‐speaking backgrounds (NESB) arriving in Australia on permanent visas. The program (‘Skilled Professional Migrants Program’—SPMP) was delivered by AMES Australia and internally evaluated through a telephone survey of 337 past participants. A report of survey results, primarily gauging short‐term post‐program employment outcomes, presented a very positive picture. In this paper we take a fresh look at the quantitative and qualitative survey data in order to analyse the success of the program from the perspective of gender. The paper focuses on gender differences in professional employment transition post‐program in the context of the structural impact of the gendered labour market. We found a significant difference between NESB men and women in their post‐program labour market incorporation into professional jobs that matched their skills. The gendered structures also influenced the ‘networking effect’ of the professional transition program.     

Effective retirement age from employment and full‐time employment,and the impact of the 2008 crisis

Estimates of effective retirement age based on labour force participation rates are commonly used for actuarial experience review and policy development. However, the transition from work to retirement and the socio‐economic environment have evolved over the years, influenced by a growing role for gradual retirement and the labour market impact of the 2008 economic crisis. Rather than focusing exclusively on retirement ages based on labour force participation rates, this article presents complementary estimates of retirement ages to better assess the effective retirement age from employment. It also introduces the concept of retirement from full‐time employment, showing that the retirement age from full‐time employment is systematically lower than the retirement age from employment. The results reveal that the trend towards an increase in the retirement age has been impacted by economic conditions when considering the effective employment of older workers. Results are presented for different Member countries of the Organisation for Economic Co‐operation and Development over the period 2005–2015.     

What works for whom? An analysis of active labour market programmes in Norway

This article examines whether some active labour market programmes (ALMP) targeted at social assistance recipients are more effective for some groups than for others in increasing self-sufficiency , i.e. gross earnings . The study focuses on the interaction between two types of programmes – employment programmes and training programmes – and the social charac-teristics of the participants. The data are derived from the pool of the entire population of social assistance recipients registered in Norway in 1995. The study adopts a quasi-experimental design. To handle selection bias, a matching procedure based on a propensity score approach is applied. Training programmes yield positive outcomes overall and for subgroups, whereas employment programmes produce no significant effects overall. However, for employment programmes there is an interaction effect between the likelihood of participation and outcome: beneficiaries with social characteristics (e.g. age, education, work experience) that are associated with a medium chance of participating experience a positive and significant increase in earnings. For those with lower and higher chances, the effect is negative. This points to the importance of conducting stratified analyses in effect evaluations. Thus, the results are also likely to be more relevant to policy makers.     

After Retrenchment: Labour Market Experiences of Women and Men

Job loss in manufacturing industry has been a marked feature of the Australian economy over the last decade but little is known about the prospects for re-employment of workers who have been retrenched. This paper reports the results of a survey of the subsequent labour market experiences of 271 workers made redundant when a whitegoods plant was closed in December 1982 at Bankstown in Sydney's western suburbs. The retrenched workers were contacted twice, ten to twelve months apart and a response rate of 80 per cent was achieved. The paper compares the labour market experiences of retrenched women and men. Does the lower labour force participation rate of women in the population at large apply to women who have previously shown a strong commitment to the labour force through their stable employment history? The paper discusses the factors which might affect retrenched women's response to unemployment, including institutional arrangements, a gender-based domestic division of labour and the nature of the jobs available to unskilled blue collar workers.     

Unemployment and economic security for young adults in Finland,Norway and Sweden: From unemployment protection to poverty relief

In this study, we investigated if there has been a displacement in the type and coverage of welfare services available for young unemployed adults in Finland, Norway and Sweden over the last two decades. This question is important because a number of studies have argued that the generous unemployment benefits and extensive labour market intervention found in the Nordic welfare states shield young people from the most severe consequences of economic inactivity. In this article, we instead show that during this period, less generous means‐tested unemployment and social assistance benefits have become the most important form of income protection for young people. In evidence, earnings‐related unemployment benefits now cover only 10 per cent of unemployed Swedes and Finns and 45 per cent of unemployed Norwegians aged 24 years or younger. This development marks a significant change in our understanding of unemployment protection for young people in Nordic countries.     

Social security for the twenty-first century

Social security schemes are accused of undermining both competitiveness and employment, because of the burden of contributions, and weakening economic vitality through their disincentive effects on work and levels of saving. Yet at the same time they are called upon to meet new social needs arising from family instability and changes in the labour market – growing unemployment and reduced job security, widening pay differentials and a decline in the position of self-employed workers – trends which coincide with the globalization of markets. This article postulates the need for improved redistribution (without making changes in social security coverage) in order to achieve a balance between occupational and national solidarity which favours the latter, since stable and full-time employment for all can no longer be assured.     

Young Australians' labour market engagement and job aspiration in the wake of the COVID-19 pandemic

Young people tend to bear the brunt of adverse employment consequences of a crisis due mainly to the precarious nature of their job and their over-representation among jobseekers who are having to find employment when jobs are scarce. Using quarterly welfare payment data for the period 2019–2021 from the Department of Social Services, we noted a marked increase in the percentage of 16- to 21-year-olds who received youth allowance (other) payments. While a greater proportion of Indigenous youth than non-Indigenous youth received the payments from 2019 to 2021, the gap widened following the outbreak of the pandemic. Further, applying regression analysis to data from the 2019 and 2020 waves of the 2015 Cohort of the Longitudinal Study of Australian Youth (LSAY), we find no statistically significant change in individual-level labour force status between 2019 and 2020. However, pandemic-induced labour market crises appear to have been associated with reduced work hours, heightened career concerns and sustained nonemployment, where potential impacts are larger among traditionally vulnerable youth groups such as female, Indigenous and overseas-born young persons. The study highlights the need for recognising the intersectionality of youth and other forms of identity (such as gender, Indigenous status and nativity) while designing labour market policies.     

Effective services for improving education and employment outcomes for children and alumni of foster care service: correlates and educational and employment outcomes

Outcomes for youth from foster care have been found to be poor. The education and employment outcomes of youth and alumni of foster care served by transition programmes located in five major US cities were examined. Data were collected by case managers and reported to evaluators quarterly on 1058 youth from foster care for over 2 years. Job preparation, transportation, child care, education support services and life skills were the most common services provided to youth. During the 2‐year study period, 35% of participants obtained employment, 23% obtained a General Education Development or diploma, and 17% enrolled in post‐secondary education. It was found that the longer the youth were enrolled, the more education and employment outcomes they achieved. Further, job preparation and income support services were associated significantly with achieving any positive education or employment outcome. Results indicated that certain services provided over an extended period of time can improve outcomes for youth placed in foster care. For youth to achieve positive outcomes as they transition to adulthood, additional services are necessary. Other implications are discussed.     

Gender inequalities in European unemployment benefit systems

The most important structural change which has occurred on the labour market over the past 30 years is the sustained and continued growth of female labour supply. Two-earner couples have become a majority in most European countries and lone parents, mostly women, are also on the rise. On the other hand, since 1975, labour market policies have altered the quality and nature of employment in Europe by promoting atypical forms of employment where women are overrepresented. The analysis has shown us that atypical employment results in restricted access to unemployment benefits. Moreover, combining the presence of more stringent conditions with derived rights results in more and more women being dependent upon their spouses for financial as well as social protection and can even have a disincentive effect on formal labour market participation.     

Do you feel like an insider? Job security and preferences for Flexibilization across Europe

The paper analyses the determinants of public opinion on flexibilisation of work contracts. While the literature on new labour market divides has rapidly expanded, few contributions directly look at employees’ demands for labour market regulation. By using a multi-level data set for 25 European countries, we find that the subjectively assessed job security is an important and valuable predictor of preferences for flexibilisation. In particular, those with very low and very high levels of perceived job security prefer flexibilisation compared to those with medium levels. We also show that the effect is stronger in countries with stricter employment protection legislation. The findings contribute to the literature on new divides of labour market politics in several ways. First, our empirical operationalization is related directly to the core of insider-outsider theory, the protection of work contracts. Second, subjective assessment of employment security yields important complementary insights into a debate usually focusing on objective measures. Third, we find that the (subjective) divide is context dependent; it is much more visible in countries where employment protection regulation is strong.     

Coping with long–term unemployment: economic security, labour market integration and well–being. Results from a Danish panel study, 1994–1999

On the basis of a Danish panel study of the long–term unemployed 1994–1999, the article challenges core premises underlying labour market reforms, assigning too high a priority to work and work incentives, and too little priority to social protection. Economic hardship has become widespread among long–term unemployed even in Denmark, and this is a more serious threat against well–being than unemployment as such. Generous social security, denounced as 'passive support', enables the unemployed to cope with their situation, and there are no signs of any 'dependency culture'. Incentives in terms of economic hardship may stimulate active job seeking but the panel study reveals that it has no positive effect on subsequent labour market integration.     

The Italian Case: From Employment Regulation to Welfare Reforms?

This article on the Italian case is based on recent trends in labour market reform. We critically review the reform approach adopted in recent years, mainly centred on marginal legislative reforms in employment contracts. The diffusion of flexible labour contracts, especially among the younger generations and women, together with a welfare system still based on employment seniority and job characteristics, have reinforced the segmentation of the Italian labour market and social inequalities. The absence of a negotiating strategy in introducing reforms has also increased social conflict. These trends ask for a comprehensive reform of the welfare system and for active policies to support labour market transitions, a reform which is increasingly considered in the current political debate.